IDC Forecasts Strong Growth in the Internet Security Software Market

FRAMINGHAM, MA – OCTOBER 18, 2000 – Security is not just for insurance purposes anymore. To increase profitability, companies need security solutions to expand trusted relationships with their customers, partners, suppliers, and channels. This need is driving the Internet security software market. According to IDC, its worldwide revenue will jump from less than $4 billion in 1999 to more than $11 billion in 2004.


"The ability to use security technologies to enable greater access to corporate content deepens and stabilizes relationships," said Brian Burke, an analyst with IDC's Internet Security program. "These trusted relationships yield numerous benefits, including, most importantly, increased revenue and profitability."

IDC believes the biggest opportunity in the market rests with security authentication, authorization, and administration (3A) software. In 1999, this segment was the largest part of the overall market with $2.1 billion in revenue. In addition to being the largest segment, this market will grow faster than any other. Its revenue will increase at a compound annual growth rate (CAGR) of 28% from 1999 to 2004. By comparison, the next-nearest segments, firewall and

antivirus will each increase at CAGRs of 17%.

The success of ecommerce activities and the growth in use of virtual computing architectures are obvious in North America and Western Europe. In 1999 these two regions made up 84% of all Internet security sales. North America produced nearly two-thirds of all Internet security software sales.

Information like the above can be found in IDC's report Internet Security Software Market Forecast and Analysis, 2000?2004 (IDC #B23056). The report details the following submarkets comprising the Internet security software market: firewall software, encryption software, antivirus software, and 3A software. Each submarket is analyzed, and forecasts are provided through 2004 segmented by vendor, region, and operating environment. Key trends affecting each market are discussed. To purchase this report, contact Cheryl Toffel at 1-800-343-4952 at extension 4389 or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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